Neurocrine Biosciences 2025 Q1 Earnings Mixed Results as Net Income Declines 81.8%

Neurocrine Biosciences (NBIX) reported its fiscal 2025 Q1 earnings on May 05th, 2025. The company experienced mixed results, with revenue increasing by 11.1% while net income saw a significant decline of 81.8%. The earnings results came in below expectations, reflecting challenges in patient reauthorization and market dynamics. neurocrine biosciences reaffirmed its 2025 guidance range for INGREZZA sales at $2.5 billion to $2.6 billion, maintaining an optimistic outlook for revenue growth driven by expanded sales force and improved formulary access. Despite the mixed earnings report, the company remains committed to strategic initiatives and new product launches.

Revenue

Neurocrine Biosciences reported a total revenue of $572.60 million for Q1 2025, marking an 11.1% increase compared to the same quarter in 2024. Net product sales contributed $563.70 million, demonstrating strong market demand. Collaboration revenues added $8.90 million to the overall revenue, showcasing growth in strategic partnerships and alliances.

Earnings/Net Income

Neurocrine Biosciences's EPS fell sharply by 81.4% to $0.08 in 2025 Q1 from $0.43 in 2024 Q1. Concurrently, the company's net income plummeted to $7.90 million, down 81.8% from $43.40 million in the previous year. The EPS decline indicates a challenging financial quarter.

Post Earnings Price Action Review

The post-earnings price action for Neurocrine Biosciences (NBIX) stock exhibited mixed results across varying timeframes. The 3-day win rate for revenue-related stock price increases stood at 38.10%, suggesting a modest likelihood of upward movement shortly after the earnings report. In the 10-day period, the win rate was slightly lower at 33.33%, indicating similar expectations for price gains. However, the 30-day win rate was higher at 47.62%, pointing to a stronger chance of stock appreciation in the longer term. The maximum observed return following the earnings report was 3.30%, recorded 61 days post-report. Net income also showed comparable win rates, with a promising 30-day outlook. Overall, while there is a potential for stock price increases, the impact of earnings metrics on nbix stock remains somewhat limited.

CEO Commentary

Kyle Gano, Chief Executive Officer, expressed optimism about Neurocrine's position, crediting strong execution across INGREZZA and the early adoption of CRENESSITY as key growth drivers. He emphasized the company's focus on expanding its pipeline with promising advancements in R&D and upcoming leadership transitions, confident in the potential for continued revenue growth and evolving into a multiple blockbuster neuroscience organization.

Guidance

Neurocrine Biosciences reaffirmed its 2025 sales guidance for INGREZZA, projecting net product sales between $2.5 billion and $2.6 billion. The company anticipates an acceleration in new patient additions, driven by investments in its expanded sales force and improved formulary access, despite some challenges from gross-to-net dynamics.

Additional News

Neurocrine Biosciences recently announced significant changes, including the appointment of Sanjay Keswani, M.D., as Chief Medical Officer starting June 2, 2025. Additionally, the company completed a $300 million accelerated share repurchase initiated in November 2024 and launched a second repurchase program accommodating up to $500 million in outstanding common stock. By March 31, 2025, Neurocrine had repurchased $150 million of stock, with $350 million remaining authorized for repurchase. These strategic moves underscore the company's commitment to strengthening its financial position and enhancing shareholder value.

Ask Aime: "Neurocrine Biosciences shares surge after beating earnings expectations, with a focus on INGREZZA sales growth."